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Before the bell: Solid opening expected following Fannie/Freddie gov't plan; BUD takeover

U.S. stock futures were solidly higher Monday morning, indicating a similar start to U.S. markets, after a very interesting weekend in which a government plan was set in motion to rescue ailing mortgage giants Fannie Mae and Freddie Mac and Budweiser maker accepted a $52 billion buyout offer.

Last week, and Friday was no exception, stocks tumbled due to concerns over government-sponsored mortgage buyrs Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) and their possible insolvency. On Friday, the Dow industrials fell 128 points, or 1.14%, the Nasdaq Composite closed 18 points, or 0.83%, lower, and the S&P 500 dropped 13 points, or 1.11%.

But this morning, all that changed after Sunday the Federal Reserve and the Treasury Department announced steps to bolster the slumping mortgage giants Fannie Mae and Freddie Mac. The plan, "is intended to signal the government is prepared to take all necessary steps to prevent the credit market troubles that erupted last year with losses from subprime mortgages from engulfing financial markets." That includes granting Fed New York authority to lend the two as much as necessary. FNM shares are 28% higher and FRE shares are 29% in premarket trading.

Still, while the government may have choice but to help its sponsored mortgage companies, it has signaled it won't help other struggling financial companies, leaving Lehman Brothers and others to fend for themselves, unlike the scenario with Bear Stearns.

The Fannie/Freddie rescue plan is not the only think boosting markets this morning. A giant beer deal is also helping sentiment on the Street. Finally Anheuser-Busch (NYSE: BUD) the maker of iconic American brands Budweiser and Bud Light, has agreed to a $52 billion takeover offer from giant Belgian brewer, Inbev NV. The deal will create the world's largest brewer.

Unlike Anheuser, Yahoo! (NASDAQ: YHOO) again rejected what some say was a better offer from Microsoft (NASDAQ: MSFT) and Carl Icahn that over the weekend. The offer, though, was only for Yahoo's search operation.

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S&P 500+5.481,242.31

Last updated: September 06, 2008: 01:47 PM

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